Tesla, BMW challenge EU tariffs on China-made electric cars

The European Commission announced on Monday that Tesla, owned by Elon Musk, and German auto giant BMW have challenged in a European Union court the bloc’s additional customs duties on electric cars manufactured in China.

The two companies, which manufacture electric cars in China, resorted to this step after Chinese carmakers BYD, Geely and SAIC filed appeals before the European Court of Justice against the additional customs duties of up to 35%.

“We have taken note of these cases and look forward to defending ourselves in court,” European Commission spokesman Olof Gill said, according to Agence France-Presse.

Brussels imposed additional tariffs on electric cars manufactured in China in late October, after an investigation concluded that government support provided by Beijing unfairly affected European carmakers.

The move comes at a time when the European auto industry is in crisis, due to high manufacturing costs, a faltering shift to electric vehicles, and increased competition in China, a major market.